The tough math behind the current economic recovery.
It should come as no surprise that the stock market is a very poor barometer on the financial health of Americans. We think of the stock market as a temperature gauge on how well Americans are doing. If that is the case, the record breaking highs in the stock market should reflect a very happy and well off economy. That unfortunately is not the case. There has been a deep structural shift in the last decade which only accelerated since the recession engulfed the nation. Corporations have increased profits largely by chopping wages and other compensation to employees. This is part of a global low wage trend that is now fully rolling over the United States. New data reflects this deeper morphing of our economy and also explains why many working and middle class Americans are finding it harder to keep up with the changing winds of the economy. Suppressed wages, higher corporate profits, and less compensation. What you would like to see is profits trickling down into the pocket books of Americans yet that is not the case.
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